850.33/6–3051: Telegram
The Acting United States High Commissioner for Germany ( Hays ) to the Secretary of State 1
1011. Ref ourtel 996 of 26 June,2 rptd London 289, Paris 338, pouched Frankfort and Duesseldorf; and Dept to London 6181 of 27 June,3 rptd Frankfort 8901, Paris 7143 concerning scrap.
Bode saw Erhard at latter’s request 30 June. Erhard rejected counterproposal reftel, declined make counterproposal. He insisted Ger minimum requirements 350,000 tons must be met and eld not accept any formula entailing risk for this requirement. Willing step up scrap collection efforts and invite US/UK observers and suggestions to prove FedRep’s earnest desire meet obligations.
[Page 128]We reiterated seriousness of situation brought about by FedRep’s failure honor commitments, unfairness in shifting all risk entailed in shortfall collections to importing countries, and lack of collection effort and performance since commitments first entered. Stated that Erhard’s present position did not afford any basis whatever to arrive at agreed solution.
Erhard stated he wld like to discuss matter in Wash.4 Advised him he wld encounter same attitude and arguments there. Advised MacReady who took very serious view. Stated negots in Wash might lead out of impasse if US willing to exert heaviest pressure.5
Will send our recommendations after full unilateral consideration and after consultation with MacReady. Buttenwieser leaving here 3 July and will be available Wash 5 or 6 July.
- Repeated to London as 296, and to Paris, Frankfurt, and Dusseldorf. McCloy was in Washington during the final weeks of June and the first weeks of July for consultations.↩
- Not printed, but see footnote 3, supra.↩
- Supra.↩
- Regarding Erhard’s discussion of the German scrap problem with American officials during his trip to Washington in the second week of July, see telegram 159, infra.↩
- In telegram 92 from London, July 6, Ambassador Gifford reported on a conversation between Minister Julius C. Holmes and Lord Henderson, Parliamentary Under Secretary of State for Foreign Affairs, in which Henderson first stated that the British Government was greatly disturbed by the recent refusal of Erhard to consider U.S.–U.K. scrap proposals and then expressed the hope that U.S. officials could impress upon Erhard the importance which the United States attached to a satisfactory solution of the problem when Erhard visited Washington. Henderson added that unless a solution could be reached promptly, the consequences would be very serious. Britain “strongly resented” the failure of the Germans to cooperate on this matter particularly in view of British efforts to help Germany on such matters as admission to the Council of Europe. (862A.3314/7–651)↩